Estate Planning – How not to leave a trail of chaos

Let’s face it: no-one likes to think of death, especially their own. It’s not exactly a great conversation starter, is it? This might explain why so many people end up “dying Intestate” which means they die without a will and, as a consequence, have their assets distributed according to State law.

Sadly, the way State law distributes a deceased person’s assets among family members can often be a lot different to the way a deceased person wanted their assets distributed. It can create a lot of unnecessary stress and conflict within a family.

So unless you don’t have a single possession to your name, you need to not only think about preparing a Will, but do something about it.

You need more than just a Will. You need an Estate Plan.

Why having a will is not enough

If you have a Will in place, you may not think you even need an Estate Plan. After all, your will spells out your “Who gets what” instructions regarding your estate, right?

Unfortunately, the estate you’ve specified in your will may not include all of your assets. By law, your Will doesn’t include assets such as:

  • jointly-held property
  • superannuation
  • proceeds of life insurance policies
  • assets held in trust
  • company assets.

To control what happens to these assets, you need an Estate Plan.

 6 more reasons to have an Estate Plan

 A well-written Estate Plan can do more than just distribute all of your assets the way you want. It can also help:

  1. Your beneficiaries (i.e. your loved ones) to reduce (if not eliminate) tax on the income generated when they receive their inheritance, and every year thereafter
  2. Protect your beneficiaries’ inheritance from unfortunate events such as divorce and bankruptcy
  3. Minimise or even avoid the death benefits tax when distributing your superannuation benefits
  4. Guard against a beneficiary wasting their inheritance because of their spending habits, mental health, drug addictions, gambling or other vulnerabilities
  5. Make capital gains tax savings on the assets distributed through your estate
  6. Ensure your assets are passed to your preferred beneficiaries rather than, say, an in-law or former spouse.

Who should help you create your Estate Plan?

While a Will is a legal document, its creation shouldn’t be left solely to your solicitor. You need someone who knows about you, your family and your financial situation. Often the person who generally knows the most about that is your accountant or financial planner.

However, while they may know all about your finances, they may not have the legal qualifications needed to create a watertight Estate Plan. So you actually need your accountant or financial planner and a solicitor.

An Estate Plan will provide you with the clarity on what to say in your Will, so that the link between your wishes and reality can be secure.

According to TAG Financial Services partner Jason Roccasalvo:

“Successful retirement and estate planning can be complex.  There are many legal, financial and tax implications that will not just take care of themselves.  As many of our clients have already experienced, you will be enlightened and also relieved at how beneficial discussing these matters with knowledgeable advisers can be.”

 Avoid leaving a trail of chaos behind you.

Whether or not you have an active Will in place, without an Estate Plan there’s no telling who your assets may end up with. Avoid creating stress and conflict for your loved ones, and give yourself the peace of mind in the here-and-now that your affairs are well in order.

Estate Plan Review
A good Estate Plan ensures your estate is distributed according to your wishes. We guide you through all the elements of a good Estate Plan, to find any gaps and highlight actions you need to take. Contact us to arrange a ti

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If you would like to discuss your investing options, we offer a 1 hour no obligation, complimentary consultation with one of our advisers to discuss your situation. Contact us to arrange a time.



Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686).